Alpha Pension: Death payments

gtat

Hello,

I left the Civil Service earlier this year, and I had accrued a pension worth approx. £18k pa in the Alpha scheme. I'm now looking at purchasing life insurance, but first wanted to ensure I understand the death payments for Alpha:

https://www.civilservicepensionscheme.org.uk/knowledge-centre/pension-schemes/alpha-scheme-guide/death-benefits-section-06/death-with-a-preserved-pension-section-06c/

It's a very morbid subject, but I have a few questions:

1. Does this mean that if I did before I start taking the pension my nominated person (wife) would receive a lump sum of 5 x £18k, plus an annual pension of 37.5% of £18k?
2. Is the annual pension from date of death or from NPA?
3. As well as my wife getting the payments above, my son (2 years old) would get 30% x £18k from date of my death?
4. If my understanding of all the above are correct (£90k lump sum payment + approx £6k annual payments to each of wife and son from date of death, then I may not need life insurance, just critical illness cover. I assume there aren't similar (reduced) Alpha pension payments for critical illness?

Many thanks.

Exotoxin1

When you say you have a deferred pension of £18k, that presumably is at state pension age (67?).
If you die before that, would that figure be reduced by a potentially significant amount, e.g. by half at age 55 say, before they work out the benefits (5x for lump and 37.5% for spouse, etc.)?

hugheskevi

gtat said:

Does this mean that if I did before I start taking the pension my nominated person (wife) would receive a lump sum of 5 x £18k, plus an annual pension of 37.5% of £18k?

Yes, assuming she is not more than 12 years younger than you.

Is the annual pension from date of death or from NPA?

Date of death

As well as my wife getting the payments above, my son (2 years old) would get 30% x £18k from date of my death?

Yes.

If my understanding of all the above are correct (£90k lump sum payment + approx £6k annual payments to each of wife and son from date of death, then I may not need life insurance, just critical illness cover. I assume there aren't similar (reduced) Alpha pension payments for critical illness?

Nothing for critical illness for deferred members.

gtat

Exotoxin1 said:

When you say you have a deferred pension of £18k, that presumably is at state pension age (67?).
If you die before that, would that figure be reduced by a potentially significant amount, e.g. by half at age 55 say, before they work out the benefits (5x for lump and 37.5% for spouse, etc.)?

Yes, from SPA. I assume the £18k figure is used, I don't think reductions are made based on the age of death. But happy to be corrected if that's not the case!

gtat

hugheskevi said:

gtat said:

Does this mean that if I did before I start taking the pension my nominated person (wife) would receive a lump sum of 5 x £18k, plus an annual pension of 37.5% of £18k?

Yes, assuming she is not more than 12 years younger than you.

Is the annual pension from date of death or from NPA?

Date of death

As well as my wife getting the payments above, my son (2 years old) would get 30% x £18k from date of my death?

Yes.

If my understanding of all the above are correct (£90k lump sum payment + approx £6k annual payments to each of wife and son from date of death, then I may not need life insurance, just critical illness cover. I assume there aren't similar (reduced) Alpha pension payments for critical illness?

Nothing for critical illness for deferred members.

Thank you @hugheskevi. Very helpful!